How are Intelligence and Data-Driven Supply Chains Transforming Businesses?

also gaining much-needed real-time visibility of them as they happen. According to a study conducted by The BCI in 2017, 69 percent of companies reported having visibility problems in their supply chain. It is hard to believe that only four years later, modern companies are easily capable of making quick, data-driven decisions to boost their performance.

Without a doubt, it is necessary to have an effective management system that gives a general, actionable overview of the business operations at all times. Although it may sound difficult, it is not. We now have access to supply chain management tools that facilitate the tracking and automation of different business operations. With that in mind, let us show you how these tools are transforming businesses.

Thorough Tracking Helps Reduce Operation Costs

Whether it is about tracking inbound processes to ensure the company is working with the best suppliers, or the outbound processes to ensure the products reach their customers, tracking each step is fundamental to making operations profitable long-term.

“Most intelligent supply chain management software tools allow business owners and department leaders to have a clear view of every ongoing process in the company, that way they can secure successful teamwork and efficiency on every step of their supply chain,” stated Brandon Ahmad, Dynamics 365 Technical Architect and CEO of Instructor Brandon.

For example, companies can use these tools to map warehouse space based on their day-to-day activities. The way they do so is by integrating their point-of-sale, accounting, and customer relationship management systems into their supply chain management solution. That way they get real-time updates on stock levels and inventory movement.

According to The Hackett Group, 81 percent of supply chain managers reported that data analytics are crucial when it comes to reducing costs. These features help minimize guesswork at all times, resulting in cost-effective operations that help businesses run efficiently.

Efficient Processes Result in Higher Profit

No doubt, the success of a business is directly linked to the effectiveness of its supply chain. With proper management, reducing the expenses of the operations connected to that chain is more than possible.

For example, modern supply chain management tools have intelligent forecasting capabilities. Although its primary function is estimating the number of products you will sell in the future based on previous sales, simply knowing that information helps businesses tackle some daily tasks more efficiently.

First, it helps companies reduce the costs of storage. By knowing their inventory-to-sales ratio, they can weigh the costs of storing their products against the cost of ordering new products. Second, knowing what sells means businesses get to sell more and not less. Think about it, if a company has already spent the money to create products and they do not sell, what is going to happen? These investments will become a net loss, plain and simple.

By knowing what customers want, businesses can keep the most in-demand products in stock. Not only does that practice result in immediate sales, it also helps create customer loyalty so they can sell more products in the future.

Intelligent Supply Chains Keep Customers Happy

If there is one thing that intelligent supply chain management systems can help businesses with, it is meeting customer expectations. After all, how a business manages its internal and external processes reflects directly on its products.

No matter the size of the company, the one thing they cannot afford is disappointing customers. Imagine a store owner requests a batch of products from a supplier, but the products do not arrive in time. Or if they do arrive, they do so in bad shape. What do you think is going to happen? They would never request products from that supplier, that is for sure.

Intelligent supply chain management tools help companies avoid becoming that supplier. By having a good grasp of what happens inside and outside of the company, a business can guarantee excellence when it comes to the quality of its products.

Conclusion

Overall, by having a good grasp of their internal and external workflows, companies can optimise their business operations to ensure high-quality products reach their customers while saving on costs. The addition of technology to the supply chain process has proved very useful thus far, and it is only going to get better as time passes.